Skims, the clothing brand co-founded by Kim Kardashian, has secured a valuation of $3.2 billion in the funding round. The company raised $240 million in a Series B funding round led by Lone Pine Capital, with additional participation from D1, and existing investors Thrive Capital, Imaginary Ventures, and Alliance Consumer Growth.
Skims, known for its waist-cinching nude shapewear and underwear that stretches twice its size, plans to use the funds to accelerate its retail and brand partnerships as well as product innovation.
Since its launch in 2019 as a shapewear brand, Skims has expanded into loungewear and sleepwear. Kardashian co-founded the brand with entrepreneur Jens Grede, while his wife, Emma Grede, serves as the founding partner of Skims and is also the co-founder of Khloé Kardashian’s Good American denim line.
With 4.9 million followers currently on Instagram, Skims sits alongside Kardashian’s other brands, KKW Beauty and KKW Fragrance. After the latest valuation, Skims has surpassed Kardashian’s cosmetics empire, which she sold 20% of to Coty in 2021 for $200 million, valuing it at $1 billion.
Skims originally launched as an online direct-to-consumer brand and has since expanded to mainstream luxury stockists such as Selfridges, Ssense, Net-a-Porter, and Nordstrom. In November, Skims received the Fendi seal of approval with a collaborative collection spanning shapewear, hosiery, ready-to-wear, beachwear, and accessories. In January, the brand released its second capsule collection for Team USA, following the success of the first collection, which sold out in 24 hours and was worn by Team USA athletes at the Olympic and Paralympic Games in Tokyo in 2020.
Skims’ success can be attributed to its unique positioning as a brand that caters to women of all sizes and shapes. The brand’s inclusive approach has garnered a massive following, with customers ranging from petite to plus-size. Additionally, the brand’s strategic partnerships with high-end retailers have helped it reach a wider audience and establish itself as a luxury brand.
The $3.2 billion valuation is a testament to Skims’ impressive growth and potential for further expansion. With the new funds, the brand plans to continue its upward trajectory by investing in product innovation and expanding its retail footprint. With Skims’ continued success, it is likely that the brand will continue to attract investors and achieve even greater heights in the future.
